| Following the tide of globalization, the tendency of trade liberalization and free flowing of international Capital has been strengthened day by day. As a result of the rapid advancement of science and technology, the international competition tend to focus on the comparison of technology level and knowledge accumulation. Technology advancement has turned into one of the most important impetuses of world economy. Concerned to the whole world economy, in order to save scarce resource, each country should not only make technologic innovation by themselves, but also enjoy the technology advancement as public product internationally. While international trade realized this intention as well as stimulating the innovating activities of both sides. Likewise, the Primary purpose of China's open-door policy is to improve national productivity and develop economy by introducing advanced technology, equipment, good experiences in management and organization of other countries. By expatiating theories and demonstrating, this article analyzed how international trade influences a country's technological advancement. General speaking, it takes into effect by two ways: one is to motivating national innovation consciousness and the other is to obtain technique by international technology transfer. Here we set up a model based on Chinese data from 1984 to 2001, it illustrates that international has great function on our country's productivity. On the other hand, the development of Chinese home appliances industry also confirmed the importance of foreign trade and investment. Based on above analysis, we present some effective advices to speed up Chinese technological advancement.
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